EIB lends £530m to support Severn Trent’s investment programme in UK

The European Investment Bank has agreed to offer a £530m long-term loan to Severn Trent to support the UK water company’s five year investment programme.

The British firm supplies potable water and offers waste water treatment for over 7.7 million people and 4.3 million households and businesses across the Midlands and mid-Wales.

Severn Trent intends to invest £6.2bn for expansion of its water business by 2020, out of which nearly £3.3bn has been allotted for capital investment programmes including the £255m Birmingham resilience project.

The loan granted to the firm is one of the largest for any UK water firm, claimed EIB.

The bank has already provided £2bn to support water infrastructure since 1978, in Severn Trent operating regions.

EIB vice president Jonathan Taylor said: "The European Investment Bank is committed to supporting long-term investment in water infrastructure across the UK and around the world.

"The new support represents one of the largest ever loans by the EIB for investment in the UK water sector and is testimony to the hard work done by Severn Trent in recent years and their ambitious plans for the future."

As per its five year plan, the company looks to minimise flooding, improve river water quality by using innovative solutions, reduce sewer blockage.

The company also aims to fix all visible leaks within 24 hours and reduce supply interruptions by more than 50%.

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Image: Severn Trent Climate Action. Photo: courtesy of Severn Trent Water.